Toyota and Mazda have signed an agreement in which Mazda can produce a car using the Toyota Hybrid System II, which consists of a high-capacity battery, an electric motor, a generator, and a power control unit, according to the report.

The agreement lets Toyota lower production costs while giving Mazda the chance to jump into the hybrid fray earlier than it otherwise would have been--similar to how Nissan currently sells a hybrid version of the Altima in eight states using the same Toyota drivetrain pieces.

Mazda's current (non-hybrid) mid-size sedan is the Mazda 6 (pictured); it's possible that Mazda will build a separate, slightly smaller model, similar to how Toyota sells both the Prius and the Camry.